Companies Fresh Start Scheme 2020

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04 April 2020

COMPANIES FRESH START SCHEME 2020

Ministry of Corporate Affairs has introduced a new scheme called “Companies Fresh Start Scheme, 2020” whereby permitting the defaulting companies for One-time Condonation of delay in filing statutorily required documents with the Registrar without the payment of any additional fees as well as granting of immunity from any prosecution or proceedings for imposing penalty only on account of delay associated with certain filings.

Under CFSS 2020, defaulting companies would be required to pay only normal fees for filing of documents. This scheme gives an opportunity to defaulting inactive companies, while filing due documents under CFSS-2020 can simultaneously get themselves declared as dormant companies by filing Form MSC-1 at a normal fee or apply for striking off the name of company by filing e-Form STK-2 for strike off.

Features of Companies Fresh Start Scheme 2020

1.Applicable to companies which have defaulted in filing of any document, statement and return on MCA-21 within due date.

2.Defaulting companies can make good by filing forms only with normal fee payment and no additional fee would be levied on filing.

3.Immunity shall be provided from launch of any prosecution or proceeding for imposing penalty on the delay in filing the document.

4.After filing of delayed forms are approved by designated authority or after the documents are taken on record, then after the closure of the scheme the company shall apply for an immunity certificate under this scheme. Application seeking immunity should be filed before expiry of six month from closure of this scheme. No fee is payable on this form.

5.In case the company or any of its officer in default has filed any appeal against any prosecution launched or proceedings for imposing penalty then said appeal should first be withdrawn.

6.This scheme is not applicable to companies under striking off, amalgamation, dormancy, vanishing companies and where the increase in authorised capital or filing of any charge related documents is involved.